American Express Platinum Card / Airline Tickets, Hotels...

WITH AN ANNUAL FEE OF $385, THE American Express Platinum Card promises some big payoffs. But whether the perks are worth the price depends on what sort of traveler you are: where you go, how often, and the level of luxury you require.

The card can be a waste of money, or it can save you thousands, but you need to compare your travel habits with what it offers. Some of its two dozen different benefits are mere padding; a few are available to anyone who carries an American Express green or gold card. Others are offered by other companies' cards—such as Diners Club or Visa Gold—or through other, less expensive avenues. Says one insider who works for AmEx, "There's almost nothing the Platinum Card can do that a very good travel agent can't do for you."

The particular combination of privileges offered by American Express, however, is unique. Here is a rundown of the card's exceptional travel perks—and a few pitfalls.

AIRLINE TICKETS

Platinum Card's two-for-one airline-ticket deal may be the most substantial benefit it offers. Members who buy a first- or business-class international ticket on certain airlines receive a companion ticket for free. The participating lines this year are Aeromexico, Air New Zealand, Alitalia, Asiana, Continental, Iberia, LanChile, Sabena, and, during certain months, Lufthansa and Swissair. If you buy just one Continental first-class round-trip from New York to Paris, for example, your companion gets a free ride worth $3,358—which more than covers the $385 annual fee. This is a huge benefit for travelers who fly the participating airlines, who wouldn't think of flying coach, and who don't use frequent-flier miles for international trips.

HOTELS AND RESORTS

At 279 fine properties around the world, Platinum Card members are given a complimentary continental breakfast for two daily, a late checkout, an upgrade if a better room is available, and an "amenity" (valued at about $50) that varies according to the hotel, such as a free massage, waived golf fees, airport transfer, or an early check-in. But other organizations have similar added-value deals with top properties. For example, subscribers to Andrew Harper's "Hideaway Report," a $125-a-year newsletter, automatically belong to the Q Club, which negotiates reduced prices and special amenities at more than 100 top resorts. And A.P.I. Travel Consultants, a network of 178 travel agencies, offers benefits and upgrades at its 130 selected hotels and resorts—and there's no fee for booking.

CRUISES

Platinum Card members buying a cruise with the card receive either a two-category cabin upgrade or a $300 shipboard credit, along with cocktails or dinner with the ship's captain, on participating lines (Abercrombie & Kent Explorer, Celebrity, Club Med, Crystal, Cunard, Holland America, Norwegian, Premier, Princess, Renaissance, Seabourn, and Windstar). With just one trip, then, the card pays for itself in shipboard credit—if you're going to use it. Sometimes the credit cannot be used for shore excursions, which leaves only spa and salon services, gift-shop merchandise (which you may not want), and alcoholic drinks (which on some ships are free anyway).

Travel agents who specialize in cruises may have enough clout to arrange for the same upgrades and private cocktail parties that the Platinum Card provides— and more. On a Seabourn Mediterranean cruise last spring, for example, passengers who booked through Platinum received a $300 shipboard credit—per cabin, not per person. Those who booked through A.P.I., on the other hand, received $1,000 per person off the cruise rate and a free dinner and kitchen tour at the Hotel de Paris in Monte Carlo.

CAR RENTALS

Platinum Card holders receive free membership in three rental clubs: Budget Express, Hertz #1 Club Gold, and National's Emerald Club. Membership allows renters to bypass long lines and receive complimentary upgrades (subject to availability). The Hertz and National memberships normally cost only $50 apiece; Budget Express is already free to any renter.

AIRPORT CLUBS

Platinum Card holders also receive free membership in two airline clubs: Continental's Presidents Club, which normally costs $200 a year, and Northwest's WorldClub, ordinarily $195 a year. Again, this is not the deal it might seem. Although Continental and Northwest club members can use their airline's lounges during layovers no matter what carrier they're flying, Platinum Card holders can use them only if they are flying Continental or Northwest.

TRAVEL-EMERGENCY ASSISTANCE

Platinum Card members can call a toll-free or collect number from anywhere in the world if they need emergency help—a referral to an English-speaking doctor or lawyer, for instance, or aid in filling a prescription.

The program also includes free medical evacuation for sick and injured travelers, which can cost tens of thousands of dollars. But this benefit applies only if the people at Platinum deem the evacuation to be medically necessary and they coordinate all the arrangements from the start.

Unfortunately, our Ombudsman column has received letters from Platinum Card holders who misunderstood these restrictions because they hadn't read the promotional literature carefully. The Platinum plan should not be considered a substitute for a more comprehensive—but also more costly—travel insurance policy that includes payment of hospital bills overseas and reimbursement of expenses incurred by cutting a trip short.

TRAVEL AGENT SERVICES

The feature that the card members we interviewed found most disappointing was Platinum Card Travel Service, the agency that cardholders can use to book trips. They complained that the agents were uninformed and little-traveled and that they tended to push American Express products over other types of trips.

For instance, Platinum Travel Service sells adventure trips such as white-water rafting in Costa Rica and biking through Burgundy. But a conscientious adventure-travel specialist may do a better job of selecting the right trip for your particular level of interest and expertise.

Platinum Card does provide a $100 credit toward the purchase or rental of equipment, such as a bike or outerwear. But, as one agent put it, "It's not a free flipper for your dive but the right dive spot that matters."

Many card members wrongly assume that they must book their trips through Platinum Travel Service. Actually, card members can use any travel agent they want and still receive benefits, as long as that agent books the trip through Platinum Travel Service.

OTHER PERKS

There are several other Platinum Card features that go beyond what the gold and green cards offer and which no travel agent can provide all in one package. These include cash advances of up to $10,000 a month; invitations to events that are unavailable to the general public (such as a private viewing of the Matisse exhibition); $500,000 in travel-accident insurance, which covers death or dismemberment; and baggage insurance of $1,250 for carry-on luggage and up to $500 for checked luggage, beyond what the airline and your homeowner's insurance provides.

Source: Conde Nast Traveler Magazine